Investing
This is the term for a share of ownership in a company.
What is a stock?
This is a number that represents your creditworthiness to lenders.
Credit Score
This is a plan for how to spend and save your money each month.
What is a budget?
This type of insurance helps pay for medical expenses like doctor visits, prescriptions, and hospital stays.
What is health insurance?
This is a type of account where you can deposit money, withdraw it at any time, and earn a small amount of interest.
What is a savings account?
This type of investment is essentially a loan to a company or government that pays back interest over time.
What is a bond?
This is the maximum amount you are allowed to borrow on a credit card.
What is a credit limit?
These are costs that stay the same each month, like rent or a car payment.
What are fixed expenses?
This insurance protects you financially if you're in a car accident or your vehicle is stolen.
What is auto insurance?
This is the term for a loan from a bank or financial institution to help purchase a home.
What is a mortgage?
This term describes the strategy of spreading investments across different asset types to reduce risk.
What is diversification?
This type of interest rate changes over time based on market conditions, unlike a fixed rate.
What is a variable interest rate?
This popular budgeting rule suggests spending 50% on needs, 30% on wants, and 20% on savings or debt.
What is the 50/30/20 rule?
This is the amount you pay out of pocket before your insurance starts to cover expenses.
What is a deductible?
This type of account allows you to write checks, make withdrawals, and is typically used for everyday transactions.
What is a checking account?
This type of retirement account allows you to invest pre-tax income, with taxes paid upon withdrawal.
What is a traditional IRA?
This is the percentage of your available credit that you're currently using, and it impacts your credit score
What is credit utilization?
This is money set aside for unexpected costs like car repairs or medical bills.
What is an emergency fund?
This type of insurance provides financial support to your beneficiaries if you die.
What is life insurance?
This term refers to the amount of interest a bank pays you for keeping your money in a savings account.
What is the interest rate?
This type of investment fund trades on stock exchanges and typically tracks an index, offering diversification with the ease of stock trading.
What is an ETF (Exchange-Traded Fund)?
This type of credit report inquiry can affect your credit score and typically occurs when you apply for new credit.
What is a hard inquiry?
This type of budgeting method assigns every dollar a specific job, ensuring that income minus expenses equals zero at the end of the month.
What is zero-based budgeting?
This is the regular payment you make to maintain your insurance coverage, and it can vary based on factors like age, coverage amount, and risk level.
What is a premium?
This fee is charged by a bank if you don't have enough funds in your account to cover a transaction.
What is an overdraft fee?